Pune, 30 October 2026: Škoda Auto Volkswagen India Private Limited today – exchanged a Memorandum of Understanding (MoU) with the Automotive Research Association of India (ARAI) in Pune in the presence of Hon’ble Union Minister of Heavy Industries and Steel, GoI, Shri H.D. Kumaraswamy; Piyush Arora, Managing Director & CEO, Škoda Auto Volkswagen India and Dr. Reji Mathai, Director, ARAI; alongside other senior leaders from both the organisations to expand automotive safety and testing infrastructure in Chakan, Pune.
Under the agreement, SAVWIPL will transfer a strategic land parcel to ARAI. The land will be utilised by ARAI to establish an advanced Crash Test Facility for future mobility vehicles including BEV and ICE models to expand domestic vehicle safety research and testing capabilities. This new infrastructure will enable a greater number of EV-specific tests to be conducted within India, including rigorous NCAP assessments required for export markets.
Shri H.D. Kumaraswamy, Hon’ble Union Minister of Heavy Industries and Steel, GoI, said, “Expanding local R&D and safety testing infrastructure is essential as India’s automotive sector advances. This initiative between ARAI and Škoda Auto Volkswagen India strengthens domestic testing capacity for electric vehicles and safety standards. By establishing this facility in Chakan, we are supporting the faster implementation of future Bharat NCAP requirements, helping address India-specific road safety challenges. It will also strengthen the capabilities of OEMs in India to develop vehicles that meet stringent export market requirements.”
Located next to Škoda Auto Volkswagen India’s Chakan car manufacturing facility, the expanded ARAI facility will add testing capacity to support faster development and validation of Battery Electric Vehicles (BEVs) and emerging vehicle safety technologies.
Piyush Arora, Managing Director & CEO, Škoda Auto Volkswagen India Private Limited, said, “Vehicle safety and local engineering capability are central to our operations in India. When ARAI required land for a specialised crash test facility adjacent to our Chakan plant, we adjusted our future expansion layout to support their request. As the company whose INDIA 2.0 vehicles were the first India-made cars to achieve 5-star Global NCAP ratings for both Adult and Child Occupant Protection, we have always believed that raising safety standards benefits the entire industry. This strategic partnership will help accelerate the development of safer vehicles in India by shortening EV development timelines, strengthening Bharat NCAP testing, and expanding the country’s overall automotive engineering capabilities.”
Dr. Reji Mathai, Director, ARAI, said: “The future of mobility will be defined not only by innovation but also by the strength of the ecosystem that enables safe, sustainable, and globally competitive vehicle development. This MoU represents a strategic milestone in India’s automotive testing and safety infrastructure. As vehicle technologies evolve rapidly, the need for advanced validation, crashworthiness assessment, and regulatory compliance capabilities will continue to grow. We view this partnership as an important step towards building world-class capabilities that will serve the mobility sector for decades to come.”
Further information:
| Sarmad KadiriHead – External Communications Škoda Auto Volkswagen Indiasarmad.kadiri@skoda-vw.co.in | Gurleen KaurThe Popkorngurleen@thepopkorn.com |
Škoda Auto Volkswagen India Pvt. Ltd. (SAVWIPL)
- is headquartered in Pune and oversees the Indian operations of six Volkswagen Group brands — Škoda, Volkswagen, Audi, Bentley, Lamborghini and Porsche;
- started its India journey over 25 years ago at Chhatrapati Sambhajinagar (formerly Aurangabad) and today operates two manufacturing plants, including Chakan, Pune, with a combined annual capacity of 315,000 units;
- plays a key role as an export hub under the “Made in India for India and the World” approach, with over 725,000 vehicles shipped to 40+ countries;
- crossed 2 million locally produced vehicles in 2025, marking a significant milestone for the Group in India;
- deepened localisation and strengthened the supplier ecosystem through the INDIA 2.0 project and the introduction of the Group’s first sub-4-metre SUV for Indian customers;
- increased locally built models – Škoda Kylaq, Kushaq, Slavia, Volkswagen Taigun and Virtus – together crossed 600,000 units till now;
- offers a wide portfolio across segments, supported by nearly 700 customer touchpoints across the country;
- employs over 4,000 people and has been recognised as ‘Top Employer’ and HR Asia’s ‘Best Companies to Work for in Asia’ for three consecutive years, as well as ET HC MENA for two years in a row;
- continues to focus on sustainable mobility, practical innovation, and a balanced approach across ICE and BEV technologies for India and global markets.
To read more about SAVWIPL, click on www.skoda-vw.co.in
About ARAI:
The Automotive Research Association of India (ARAI), established in 1966, is a leading automotive R&D organisation set up by the automotive industry with the Government of India. ARAI is affiliated to the Ministry of Heavy Industries and is recognized by the Department of Scientific and Industrial Research. An ISO 9001 certified organization, ARAI is accredited by National Accreditation Board for Testing & Calibration Laboratories (NABL). ARAI is also accredited for ISO 14001, ISO 27001 and ISO 45001:2018.
ARAI offers Testing & Validation, Certification & Homologation, Design & Development, Research & Development, Projects & Consulting, Standardisation & Harmonisation, Education & Training, Testing Solutions services. It has also developed indigenous products including automotive technologies, data bases, software tools and testing facilities.
Website: www.araiindia.com
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